{"id":56000,"date":"2025-05-07T13:37:28","date_gmt":"2025-05-07T08:07:28","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=56000"},"modified":"2025-07-24T15:27:22","modified_gmt":"2025-07-24T09:57:22","slug":"yes-bank-shares-jump-10-on-tuesday-after-rbi-approves-sumitomo-mitsuis-51-stake-deal","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/yes-bank-shares-jump-10-on-tuesday-after-rbi-approves-sumitomo-mitsuis-51-stake-deal\/","title":{"rendered":"Yes Bank Shares Jump 10% on Tuesday After RBI Approves Sumitomo Mitsui\u2019s 51% Stake Deal"},"content":{"rendered":"
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In a major development for India’s banking sector, Japan\u2019s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in private sector lender Yes Bank. <\/p>\n\n\n\n

This marks a turning point for Yes Bank, which has struggled since its near-collapse in 2020. The proposed deal, which may value Yes Bank at around $1.7 billion, sets the stage for a new strategic owner with strong financial backing and global<\/a> experience. It also offers an exit opportunity for the consortium of Indian banks, led by the State Bank of India (SBI), that had stepped in to rescue the lender five years ago. Source: LiveMint<\/a><\/p>\n\n\n\n

Yes Bank Shares Surge on the News<\/strong><\/h2>\n\n\n\n

Yes Bank\u2019s stock reacted positively to the news. On 6 May 2025, its share price jumped over 10%, opening at \u20b919.24 on the National Stock Exchange<\/a> (NSE<\/a>) compared to the previous close of \u20b917.70. During intraday trade, it soared to a high of \u20b919.44, a gain of 9.83%.<\/p>\n\n\n\n

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Source: NSE<\/a><\/figcaption><\/figure>\n\n\n\n

The Deal Structure: 51% Stake in Phases<\/strong><\/h2>\n\n\n\n

Sources familiar with the transaction explained that SMBC will initially buy up to 26% of Yes Bank and then increase its holding to 51% in phases. Two possible methods are being discussed:<\/p>\n\n\n\n

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  1. A direct purchase of less than 26% followed by a merger using a share swap. <\/li>\n\n\n\n
  2. A purchase of up to 26% followed by an open offer to the public shareholders. <\/li>\n<\/ol>\n\n\n\n

    Whichever method is chosen, SMBC\u2019s voting rights will be capped at 26%, in line with RBI\u2019s regulations that prevent any single entity from gaining complete control. This model is similar to the case of Catholic Syrian Bank, where the RBI allowed a majority stake acquisition but limited voting rights to maintain balance in decision-making.<\/p>\n\n\n\n

    SBI and Other Banks to Exit<\/strong><\/h2>\n\n\n\n

    Yes Bank has been without a promoter since Rana Kapoor, its founder and former CEO, left in 2019. Since then, the bank has been owned by a consortium of Indian banks, led by SBI, which acquired stakes as part of an RBI-supervised rescue plan in 2020.<\/p>\n\n\n\n

    Currently, the combined ownership of SBI and other banks is 33.74%, broken down as follows:<\/p>\n\n\n\n